What caused the recent ‘financial meltdown’? In simple terms it was people being given financial assistance with taking on assets which they couldn’t actually afford. Remember Freddie Mac and Fannie Mae? Well these two home loan giants are government derived organizations which were instrumental in assisting people to get mortgages for houses which they couldn’t afford.
Well here in Australia the Real Estate Institute of Victoria (REIV) is saying the government should be giving more assistance to people to buy houses. Hold on a second, isn’t government intervention in the housing market what caused financial problems in the first place. The problem is that easy finance artificially inflates house prices … and REIV wants more of the same. WTF!